Update 20 November 2015
The PRA updated Supervisory Statement 1/14 to reflect the changes to the PRA Rulebook that will occur when the new Solvency II and non-Directive firm regimes come into force on 1 January 2016. The updates to this statement do not represent a change in PRA policy. This update supplements the PRA’s expectations set out in the original statement, published on 28 March 2014.
Supervisory Statement 1/14 - November 2015
Published on 28 March 2014
Background
This supervisory statement sets out Prudential Regulation Authority (PRA) policy in relation to a consultation originally published in December 2012 by the Financial Services Authority (FSA): CP12/38 Mutuality and with-profits funds: a way forward. It is relevant for all mutual insurance firms and friendly societies writing new with-profits business or with existing books of with-profits business and provides a response to comments received pertaining to the PRA’s areas of interest in this consultation.
This supervisory statement sets out Prudential Regulation Authority (PRA) policy in relation to a consultation originally published in December 2012 by the Financial Services Authority (FSA): CP12/38 Mutuality and with-profits funds: a way forward. It is relevant for all mutual insurance firms and friendly societies writing new with-profits business or with existing books of with-profits business and provides a response to comments received pertaining to the PRA’s areas of interest in this consultation.
The statement covers the:
- background and substance of the proposals in CP12/38;
- change in the regulatory landscape since December 2012 when CP12/38 was issued; and
- PRA’s expectations regarding the with-profits mutual waiver process.